Comments from Philly Fed President Harker:

  • Fed funds will continue as primary tool
  • Slow and steady on balance sheet is safest option
  • We only have estimates of demand for reserves

Separately, more from Bullard:

  • Balance sheet may not be as important today as in heyday of QE
  • Now that rates are higher, changes to balance sheet only have a minor effect
  • Changes to balance sheet only have a big effect when rates near zero

This is the heaviest day of Fed talk in awhile. And it's remarkable that they've all said absolutely nothing to move markets.